Oct 26

Oct 26 Iran PMI Report - Shahrivar 1401 (August 23 - September 22)

PMI, 2022

New purchasing managers’ index (PMI) data published by the Iran Chamber of Commerce for the Iranian calendar month of Shahrivar (August 23 – September 22) indicates that Iran’s economy grew at the fastest rate in three months. Whole economy PMI was 52.08, reflecting strength in manufacturing output.

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Following the end of summer, a period of seasonally slow demand, new order rose. The subindex for new orders jumped to 52.87, the highest rate for the past four months. New orders lifted the manufacturing, agriculture, and services sectors.

Raw materials inventory continued to be a weakness for the Iranian economy. The subindex for inventory of raw materials and machinery continued its decline, dropping to 45.22. Business insiders blamed a lack of liquidity and working capital.

Iran’s manufacturing sector continued to expand. Manufacturing PMI rose to 53.25. The output subindex surged to 55.74. The new orders subindex jumped to 50.76, indicating growing demand. However, demand appears softer that the seasonal norm.

Manufacturers are continuing to struggle with high producer prices. The manufacturing subindex for the inventory of raw materials and machinery rose a few points to 45.05, but continued to indicate that the shortage of raw materials was worsening. Furthermore, the subindex for purchase price of raw materials jumped to 62.80, signalling continued inflationary pressure.

Overall, the Iranian economy remains in a period of fragile recovery. But diminished purchasing power continues to hamper growth. At the end of Shahrivar, a new wave of national protests began, which can also be expected to depress the economic outlook.